On December 18, 2014, President Obama signed into law the Credit Union Share Insurance Fund Parity Act, which provides for federal insurance of IOLTA funds held at credit unions in the same manner and amount as provided for through the FDIC at banks. Even though Arkansas’s Rule 1.15 already authorizes credit unions as IOLTA depositories, the lack of insurance for funds belonging to non-credit-union-member clients was likely a major deterrent. Passage of the act eliminates what has been the major obstacle for attorneys wishing to utilize credit unions for their IOLTA accounts. Do you do business with a credit union? Would you consider opening an IOLTA account with one? Contact us and we can walk you through the process.
For additional information about the Credit Union Share Insurance Fund Parity Act and its significance for the IOLTA community, click here.